The case, filed by Johannesburg and London law firms Mbuyisa Moleele and Leigh Day, alleges that Anglo American was negligent in allowing uncontrolled lead contamination, and not ensuring that lead in the environment was cleaned up even after research showing widespread serious lead poisoning and deaths of local children.
The responsibilities of businesses, as well as states, to respect human rights is recognised under international law. Failing to meet global expectations to protect people and the environment means that companies are increasingly facing huge reputational and financial risks.
It seems to me and other Action for Southern Africa campaigners that the management of the Kabwe lead mine in Zambia, in which the Anglo American Group held a minority shareholding for 50 years until the facility was nationalised by the Zambian government in 1974, has resulted in a public health and environmental catastrophe, still affecting generations of children and women after almost a century of metal mining and smelting.
Lead levels in the soil are many times higher than the US Environmental Protection Agency’s limit in some areas. The incidence of childhood lead poisoning is among the highest in the world, especially in those under the age of three.
The WHO and the US Centers for Disease Control advise that there is no safe level of lead, and that even very low levels of blood lead cause IQ deficits and behavioural problems.
They recommend public health interventions and blood lead screening of individuals with blood lead levels that are less than a tenth of the average observed in young children in Kabwe.
In January 2023, a South African High Court will decide whether a class action, brought on behalf of about 140,000 Kabwe residents against Anglo American South Africa, may proceed.
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The case is set to be one of the largest human rights class actions in history, with compensation that could exceed previous awards.
However, Anglo American denies liability, placing the blame on other companies and the Zambian government.
Anglo disputes that the Kabwe community should be allowed to pursue a class action.
It unsuccessfully opposed the intervention of a group of UN Special Rapporteurs and UN Working Groups who point out that Anglo’s stance is at complete variance with the UN Guiding Principles on Business and Human Rights, which Anglo publicly endorses through its own Group Human Rights Policy.
Alarm bells will surely ring for Anglo American investors, aware of the increasing importance of strong environmental, social and governance (ESG) business policies, about the damage the Kabwe case is doing to Anglo’s reputation.
ESG is now considered the biggest risk for disruption by mining executives, according to KPMG’s Global Mining Outlook 2022. This is the first time in the report’s 12-year history that a drop in commodity prices is not the leading concern.
Many of them, including some of the world’s largest fund managers like Fidelity, BlackRock and Vanguard, are also signatories to the Principles for Responsible Investment endorsed by the UN, which works to use responsible investment to enhance returns and better manage risks.
The Kabwe case represents a particularly egregious example of corporate human rights abuse. If successful, the law will set a possible precedent for companies to be held liable to compensate for historical harms.
The case is also a test of international commitments to human rights abuses and access to justice for some of the poorest people living in an ongoing public health emergency in Zambia.
Which side of history will investors choose to sit? DM/BM
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Yes, this case needs to proceed. But this is the tip of the iceberg. What about unfulfilled historical promises of land made to Black South Africans who assisted the British war effort (read Sol Plaatjies book on the siege of Mafikeng for example)? What about reparations for the massive economic gains on South African gold and diamond mines made by the British colonial power at the expense of South Africa? What about the destruction of the South African economy by the anti-apartheid movement, without any significant rebuilding effort? What about the destruction to race relations caused by Bell Pottinger’s WMC campaign? The list is long, very long.
Geoff, you should know by now – it’s got nothing to do with justice, it’s all about the money. Only deep pocket entities like Anglo get picked on. The anti-apartheid movement is a defunct penniless movement. The British Government? A more disreputable bunch of pirates and buccaneers you will not find – they will keep your lawyers busy for millennia to come. No money there either. Look at the Jagersfontein slimes dam collapse – De Beers sold this to Superkolong [BEE group] in 2011. The dam collapsed this year, killing three innocents. And what is the first thing that happens? Sue De Beers, because Superkolong who managed it for 12 years does not have money. If you want true reparations, then we need to restore the position ex ante – all stakeholders need to carry joint responsibility – shareholders who received dividends, employees and contractors who received salaries and fees, plus all taxes earned by the government must be paid back. Once done, a discussion can be held around what reparations are due. What’s left can be redistributed to stakeholders pro rata. Otherwise, just one stakeholder carries the can for the benefits received by many.
Well said Mr Krige! The pot must beware of calling the kettle black!
And De Beers have just left Kimberley in a golden haze of PR fantasizing about the wonderfully generous legacy that they leave. Heaps of skeletons in that closet.